FACT PATTERN:
You have accepted an offer at a CPA firm. After a week of training on the firms various procedures, systems and software you are finally ready to get to work. As you settle in to your desk you open up your task management software and email and begin to sort out the various tasks assigned to you by senior staff.
Task;
Client is a bio-engineering company who has now reached the point where a large pharmaceutical company has purchased their developed asset and has agreed to hire on all the shareholders as employees. The acquiring pharma corporation has required that the shareholders turned employees close the company now that the asset belongs to the pharma corp. How would this occur? What would be the adjustments to the equity accounts?